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Gorenje Announces Outsourcing Plans
Dec 14, 2004
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Slovenian-based appliance maker Gorenje announced that it will continue to pursue an outsourcing policy, planning to generate part of its future growth in the Czech Republic, the Balkans, and Russia.

Gorenje said that although the company is not planning to move to China, the location is likely to become an important source of production component purchases for the company in the future.

"We'll purchase substantially more components in China in 2005," said Franjo Bobinac, CEO. "We would like to further increase our purchases in the dollar area of the Far East, where the U.S. dollar is weak and where we have been generating increasing sales in dollars."

According to the company, if the acquisition of Czech cooker manufacturer Mora Moravia is confirmed by the end of 2004, Gorenje will generate its growth in an acquired foreign company next year for the first time ever. According to Mr. Bobinac, the company's 2005 sales will be included in the consolidated sales of the Gorenje group. (Slovenia Business Week)

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